[Avid-L2] Re: OT: SHOW ME THE MONEY!

I don't think Apple sees Avid as a "rival". I doubt much worrying is done in the halls of Apple Inc. over whether Avid is profitable or not. Actually, Avid needs to hope that Apple does not see them as a rival, because with all that iCash, Avid would be in a bad spot.

Avid needs to impress new users, not it's current user base.

Terry, where is the "server company" clock at these days?

sw

--- In Avid-L2@yahoogroups.com, RT <huipro@...> wrote:
>
> Steve, It's not really that bleak. Avid is no longer bleeding money,
> due to the restructuring they phased in over the last year or more.
>
> Channels were combined, heads rolled, products nixed and improved,
> production and distribution costs lowered and services ramped up. They
> did burn cash in the process, in what was a truly sukky year.
>
> Meanwhile Apple gained momentum and cash while introducing new consumer
> revenue streams. That's stunning in this economic climate and just
> illustrates the different trajectories these two rivals have.
>
> Meanwhile Avid focused on the bottom line, sharpened its tools and
> impressed its customer base. Apple did not. (Once again, there was no
> discussion of PRO APPS on the earnings call. They did mention that they
> would keep Apple TV going as a 'Hobby" though). As some have put it,
> this may have been a "gift".
>
> There are many reasons to be optimistic that Avid will be returning to
> overall profitability soon. As you suggest, they will need to execute
> and grow sales in every division. I know for a fact that they intend to
> try.
>
> We'll know more tomorrow.
>
> RT
>
>
> Steve Mullen wrote:
>
> >
> >
> > "Meanwhile, Avid drained around 27% of their cash reserves in 2009."
> >
> > Where will the huge increase in sales come from? It's going to take
> > millions of sales simply to stop losing money. Millions more to make a
> > profit.
> >
> > Despite the wonder of V5, unless a whole bunch of new folks buy their
> > first Avid, at $2500, it's only the installed base upgrading their
> > units at a far lower price each.
> >
> > And, getting V5 out leaves a very costly and very difficult effort
> > ahead -- recoding the entire product-line in Objective-C so Grand
> > Central and OpenCL can be supported. This could take several years --
> > and that only lets Avid keep-up with 10.6 from last year. By then only
> > a year of cash will be left. (Can this even be done? I wonder if Avid
> > has even upgraded their original codebase to the Apple's Carbon
> > because like Adobe they are also releasing for PCs.)
> >
> > For me the question is how to use the time between V5 release and FCP7
> > release to sell MC to thousands upon thousands of totally new users.
> > The obvious way is to drop the price to $500, but now 5 times more
> > units must be sold. And, doing this is not enough. Many times this
> > number must be sold to eliminate losses.
> >
> > You can draw your own curves and it's very hard to see how the losses
> > don't continue until there is no money is left.
> >
> > Best Regards,
> > Steve
> > dvcinlv@... <mailto:dvcinlv%40me.com>
> >
> > [Non-text portions of this message have been removed]
> >
> >
>
>
>
> [Non-text portions of this message have been removed]
>

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